Discussion

1. How do bookkeeping procedures in a large organization differ from those in a small one? Are the basic principles the same or different?

2. What are some of basic the requirements for a bookkeeper?

3. When were the first known business records kept? By whom? What kinds of records were kept?

4. How did modern bookkeeping begin?

5. What are the two basic methods of bookkeeping?

6. When was the double-entry method introduced? By whom? What is its basic principle?

7. What is an account? What are the three categories of financial data listed in an account?

8. What broad areas of interest is bookkeeping concerned with?

9. What is the difference between an asset and a liability? Give an example of each.

10. What is the term used for the value of a business to its owner? What other terms refer to the same concept?

11. What is a ledger? What kinds of accounts are entered in it?

12. What is posting?

13. What information is recorded in journals?

14. On which side of an account are debits entered? On which side are credits entered? What do these terms mean literally? How are they commonly abbreviated?

15. For what purpose do some bookkeepers use a far right-hand column in their ledgers?

16. What is the basic accounting formula?

17. How are asset and expense accounts decreased? How are they increased?

18. How are liability, capital, and income accounts decreased? How are they increased?

19. What is the process by which entries are made in the ledger?

20. What is the purpose of footing, or totaling, the columns of an account?

21. What does it mean if the debits and credits in a ledger are not balanced?

22. What is not included in single-entry bookkeeping? What type of record is commonly kept by means of the single-entry method?

23. What are some of the specific types of transactions that are frequently recorded by bookkeepers?

24. What are some of the other records that a bookkeeper often keeps?

25. Why is a bookkeeper a key person in an organization?

V. Auditing what is auditing

I

Auditing is a very ancient activity. "Audit" is a Latin word that means "he hears". In ancient times auditing was the process whereby the owner heard the account given by his steward of the use of the owner's resources. The origin of stewardship goes far back into the Middle Ages. It was the original purpose of accounting and was also called "accountability". Kings or lords who were away at war or for other purposes usually left their estates in the hands of a steward. The steward kept an account of the payments and receipts of the estate so that he could be discharged of responsibility when the owner returned As a rule, the steward used to render an account to the owner, who might be illiterate and had to hear it ("audit" - "he hears").

In the early days of auditing the prime qualification for the position of an auditor was reputation. A man known for his integrity and independence of mind took this honoured position, the matter of technical ability being entirely secondary. In those days, the function of auditor was never confused with that of accountant. However, as accounting gradually became more complex, auditors became increasingly dependent on the expertise provided by accountants. Eventually, the audit function itself became totally dominated by the accountancy profession. By the 19th century, many owners of businesses appointed one of their members to be an auditor of the financial statements prepared by the directors of a company. This was partly because the process of auditing had become more complicated as business itself became more complicated.

In its modern sense, an audit is a process (carried out by suitably qualified auditors) whereby the accounts of business entities, including limited companies, trusts etc., are subjected to scrutiny in such detail as will enable the auditors to form an opinion as to their truth and fairness.

Comments

a steward – управляючий; економ; дворецький

scrutiny – уважний, допитливий погляд; дослідження